Hero MotoCorp Q4 Preview: PAT may jump 8% YoY; revenue growth to be modest

Leading two-wheeler maker Hero MotoCorp is likely to report modest revenue growth during the fourth quarter that ended March 2025, supported by improvement in average selling prices (ASPs). However, profitability is seen rising in high-single digits.

Profit for the reporting may jump 8% year-on-year (YoY), according to an average estimate of four brokerages. Revenue, meanwhile, is seen rising 2% YoY. This growth will be driven by the increasing share of premium models and higher-priced 125cc variants.

Two-wheeler (2W) demand remained subdued in the fourth quarter with volume growth declining slightly YoY. Despite the weak volume performance, ASP for bikes is expected to improve, driven by a favorable product mix, especially in the 125cc segment. This mix change is anticipated to support a modest growth in overall revenues.


While overall volume growth has been weak, certain models in the premium and 125cc categories have shown resilience. The positive impact of a richer product mix is likely to partially offset the weakness in demand for lower-cc models.

Here's what analysts expect from Hero MotoCorp Q4:

Nuvama

Revenue growth YoY shall be supported by an increase in realisation. EBITDA margin shall contract due to higher marketing spends (Auto expo and product launches). Key things to watch out for are demand outlook and timeline of new launches

Kotak Equities

We expect revenues to increase 3% YoY in 4QFY25, led by flat YoY volumes, driven by a ramp-up of Xtreme 125 volumes, offset by weakness in the 110 cc motorcycle segment and a 2-3% YoY increase in ASPs due to a richer product mix (higher mix of premium motorcycles and the 125 cc motorcycle segment).

Motilal Oswal

Volume growth remained subdued as 2W demand lagged expectations, resulting in a decline of 1% YoY. However, we expect its ASP to improve 3% YoY, led by an improved mix of 125 cc. This is likely to drive revenue growth of 2% YoY.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)